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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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Gold - "the most divisive asset class of them all"

Moses Kim:

 

"Today I will talk about the most divisive asset class of them all– gold. Even though real estate has been crushed, the general thinking still is that real estate is a good long-term investment. Bonds are still a viable investment for many people, as evidenced by falling yields. But gold? Good luck trying to convince people on that one.

 

"The most common arguments against gold I hear are: Isn’t gold expensive? And, gold serves no purpose (the “I can’t think for myself but I’ll believe whatever Warren Buffett says” argument).

 

"The easiest argument to shoot down is the one that claims gold is expensive. Gold has doubled since 1980 while the stock market has risen about 15X and somehow gold is the overvalued asset. Interesting. Heck gold hasn’t even kept up with the growth in the national debt, but again, somehow gold is overvalued. Doesn’t make sense to me, but that’s fine because it is nearing the time to load up again..." Click over for the rest.

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The Future of Gold and Money

The Future of Gold and Money:Matthew Bishop, author of 'In Gold We Trust,' stops by Mean Street to discuss gold and the future of money. recorded on USTREA...
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Ditching the Dollar - Casey Research

The dollar may not be the world's reserve currency much longer, thanks in no small part to arrogant US sanctions against Iran.

 

By Marin Katusa, Chief Energy Investment Strategist

 

"The dominance of the dollar gave the United States incredible power and influence around the world… but the times they are a-changing. As the world's emerging economies gain ever more prominence, the US is losing hold of its position as the world's superpower. Many on the long list of nations that dislike America are pondering ways to reduce American influence in their affairs. Ditching the dollar is a very good start.

 

"In fact, they are doing more than pondering. Over the past few years China and other emerging powers such as Russia have been quietly making agreements to move away from the US dollar in international trade. Several major oil-producing nations have begun selling oil in currencies other than the dollar, and both the United Nations and the International Monetary Fund (IMF) have issued reports arguing for the need to create a new global reserve currency independent of the dollar.

 

"The supremacy of the dollar is not nearly as solid as most Americans believe it to be. More generally, the United States is not the global superpower it once was. These trends are very much connected, as demonstrated by the world's response to US sanctions against Iran..."

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The return of gold to the mainstream monetary system - Part 3

The return of gold to the mainstream monetary system - Part 3 | Gold and What Moves it. | Scoop.it

Julian Phillips:

 

"For one thing, we will continue to live in a global world with nations trading amongst each other. To gold investors, such an eventuality -let alone its potential reality-would cause a return to the use of gold as a foundation for any monetary system, but not as a means of exchange, ever again.

 

"That journey has already started. Whether in a cooperative or uncooperative world, gold will have to provide international liquidity and facilitate trade between nations in place of the dollar. This will include the U.S. too.

 

"The world is headed irrevocably to a multi-currency system with the dollar as one of the world's leading currencies, but not the sole one. Gold, as always, will have to inspire the trust it once did. It will have to fill the gap left by the world of currencies that occurred when the developed world removed itself from gold and at the same time removed currencies from supplying adequate measures of value.

 

"It is thus appropriate to look at whether we will see the likes of the Gold Standard again..."

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Twitter / Cafe AJM Open 24/7: @gold_tracker tightening t ...

in reply to @gold_tracker

@gold_tracker tightening the lid only means: 1) bargain buying continues 2) upside pressure building 3) inflation trending up
Apr 17 via Twitter for Android Favorite Retweet Reply

@gold_tracker tightening the lid only means: 1) bargain buying continues 2) upside pressure building 3) inflation trending up...
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Does gold ever pay?

Does gold ever pay? | Gold and What Moves it. | Scoop.it

Adrian Ash:

 

"Is it fair to characterize gold bullion as an investment...?

 

"WHY BOTHER investing? Five years into the financial crisis - and more than a decade after the US market hit its big top in real terms - you might well ask. Especially now that cash, bonds, Treasuries and stocks pay between zero and sweet nothing in yield, just like gold bullion.

 

"The aim if not the outcome of investment is simple, however. "Investing [is] the transfer to others of purchasing power now with the reasoned expectation of receiving more purchasing power - after taxes have been paid on nominal gains - in the future," as Warren Buffett wrote earlier this year to his Berkshire Hathaway shareholders..."

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IMF Lifts Eurozone Growth Targets and Warns on Italy and Spain

IMF Lifts Eurozone Growth Targets and Warns on Italy and Spain | Gold and What Moves it. | Scoop.it
Global lender says spillover risks in eurozone sovereign debt crisis remain high.

 

"The International Monetary Fund (IMF) said the eurozone economy will not begin to expand until 2013 at the earliest and warns that the sovereign debt crisis may again spark another turn to recession.

 

The global lender raised its forecast for Europe as part of its regular World Economic Outlook, in which it also said global growth was improving but remained "very fragile".

 

"With the passing of the crisis and some good news about the US economy, some optimism has returned. It should remain tempered," said Oliver Blanchard, the IMF's chief economist.

 

"Even absent another European crisis, most advanced economies still face major brakes on growth. And the risk of another crisis is still very much present and could well affect both advanced and emerging economies."

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BIS trader removes gold 'interventions' from his biography | Gold Anti-Trust Action Committee

BIS trader removes gold 'interventions' from his biography | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it

"ZeroHedge's report notes the lately much-shortened biography offered for BIS foreign exchange and gold trader Mikael Charoze, who until a few days ago boasted of running the BIS' foreign exchange and gold "interventions." Missing from Charoze's biography now is the latter word. Does that mean that the BIS doesn't do gold market interventions anymore? Whatever it means, you can be sure that mainstream financial news organizations and know-it-all market analysts won't be asking even as they ridicule complaints of surreptitious gold market intervention as mere "conspiracy theory" -- even when the "conspiracy" is admitted over and over again in official documents"

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The Three Ways 'Old Money' Holds on to Its Riches - Economic Intelligence (usnews.com)

The Three Ways 'Old Money' Holds on to Its Riches - Economic Intelligence (usnews.com) | Gold and What Moves it. | Scoop.it
Over centuries it is the hard assets not the paper assets that retain value through collapse and catastrophe.

 

Jim Rickards: 

 

"Yet as one goes abroad, there is an even older kind of money, true dynastic wealth that has existed in some families for 300 years or longer. This type of wealth has survived not only business cycles but also war, invasion, the collapse of empires, revolution, and natural disaster. In order for family wealth to persist through so many centuries and through such adversity, something more is needed than ordinary investment skill. This rare kind of success in wealth preservation requires a longer view, infused with a sense of history and a keen appreciation for worst-case scenarios that too frequently become real.

 

"When one inquires of family members and representatives as to what it takes to preserve wealth over centuries and not just cycles, the frequent reply is "a third, a third, and a third." This is shorthand for dividing one's wealth into one-third land, one-third gold, and one-third fine art. Obviously some liquidity is needed for day-to-day expenses and some room can be made for a speculative portfolio, but the basic idea that land, gold, and art outlast and outperform riskier assets such as stocks, bonds, and cash seems sound when viewed from the perspective of centuries and not just years or decades..."

 

Hat tip Ed Steer: to http://www.caseyresearch.com/gsd/edition/bis-trader-removes-gold-interventions-his-biography ;

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Rising Consumer Expectations Imply Higher Gold Prices « Jim Sinclair's Mineset

"Rising expectations has the media giddy about the prospects for future economic growth and the gold crowd huddled together in fear. While perception sets short-term reality, it does NOT control long-term market forces. The sovereign debt crisis, largely believed to be contained to the irresponsibility of Europe, has infected the world and grows more troublesome with each passing day. Rising consumer expectations which are highly sensitive to rising stock prices show a strong inverse correlation to the price of gold. In other words, as consumer expectation rise, it tends to signal higher gold prices in the future. This correlation grows stronger during periods of economic stress."

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Caesar Bryan - Suspicious $1.5 Billion Gold Dump & Bank Runs

Caesar Bryan - Suspicious $1.5 Billion Gold Dump & Bank Runs | Gold and What Moves it. | Scoop.it

With continued volatility in gold and silver, today King World News interviewed 25 year veteran Caesar Bryan. Gabelli & Company has over $31 billion under management and Caesar Bryan has managed the gold fund since its inception in 1994. Caesar told KWN the European banking system is stil on fire, and we are now seeing bank runs in both Spain and Italy. He also stated that today’s trading at the end of the day in gold was very “odd.” Here is what Caesar had to say about the situation: “We had been having a recovery in the price of gold recently, but then gold was taken down around 1:15 pm today. There was quite significant volume in the last 15 minutes, before the COMEX closed.

 

“There were 10,000 contracts traded, which is something like $1.5 billion, and gold fell precipitously, from about $1,665 to about $1,650. This is very odd trading on a Friday afternoon when there was no other discernible movement in other markets.

 

"This made for a disappointing end to the week, but the backdrop for gold is still very solid. However, for investors, it’s hard to ignore the day to day movements..."

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Healthcare Solution: Go Back to Cash

Healthcare Solution: Go Back to Cash | Gold and What Moves it. | Scoop.it

"The expansion of health insurance and government entitlements created “free money” and thus the explosion of healthcare costs. The solution is simple and “impossible”: we all pay cash.

 

"Here’s why healthcare (a.k.a. sick-care) costs cannot be reduced; the entire system is based on vast pools of “free money”: The corporate-America or union/government employee who goes to the doctor pays a few dollars for a visit and drugs; the “real cost” is of no concern. Ditto the “real costs” charged to Medicare and Medicaid..."

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TF Metals: Mornings With Andy | Gold hit.

TF Metals snippet http://www.tfmetalsreport.com/blog/3675/mornings-andy :

 

"So, we are supposed to believe that someone or something somewhere suddenly decided at 9:55 EDT to sell 600,000 ounces (almost 19 metric tonnes!) of their physical stash of gold. This is inconceivable! The dumping of 6,000 contracts is an entirely paper, manipulative event and yet it's allowed to happen and physical price is subject to this nonsense. Doesn't it just strike you as amazing that this is even possible? The world's oldest form of money can be devalued (in fiat terms) at the whim of a WOPR and a few keystrokes? Simply ridiculous."

 

 Click over for the full piece and charts.

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The Application Process to Become a Reserve Currency Explained « Jim Sinclair's Mineset

Jim Sinclair:

 

"Anyone that thinks the dollar is not in the process of cessation as a reserve currency by choice is a world class moron or an economic flag waver."

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How China is Driving the Gold Price

How China is Driving the Gold Price | Gold and What Moves it. | Scoop.it

"Having an international currency promotes trade, cutting the US dollar out of the equation. The ultimate goal may be to pitch the renminbi as a reserve currency to compete with – or displace – the US dollar.

 

"To really sell the RMB as an international currency, it helps if it is backed with a significant amount of gold. China would never openly admit this, but a snippet from an embassy in China, via a wikileaks story, as good as confirmed it last month:

 

“The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or Euro.

 

"Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.“

 

"China has long been the world’s biggest gold producer, with all of this gold staying within its borders. China is now adding to this with huge gold purchases on the international market. Every time the price dips, as it is now, China buys dozens of tonnes of gold. Chinese buying started in earnest halfway through last year. At the current rate, China will overtake India as the world’s biggest gold consumer..."

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US Editor Of The Economist: “Paper Dollar” And “Paper Euro” Will “Debase” In A “Big Way” | ZeroHedge

US Editor Of The Economist: “Paper Dollar” And “Paper Euro” Will “Debase” In A “Big Way” | ZeroHedge | Gold and What Moves it. | Scoop.it

Zero Hedge:

 

"People Have Lost Faith In the 20th Century Religion Of Government Backed Fiat Money"

 

"Matthew Bishop, the US Editor of The Economist, has been interviewed by the Wall Street Journal TV about gold and why “people have lost faith in the 20th century religion of government backed fiat money."

 

"He says that he has become an agnostic or an atheist with regard to his belief in government-backed money as he fears that governments are in a position whereby they are going to debase currencies such as the “paper dollar and “paper euro” “in a big way.” Gold becomes one of the “alternative religions” in that environment.

 

"History shows that a deleveraging downturn takes a long time and can take 7 or 8 years. Inflationary pressures are building and will be seen in the second half of the cycle, according to Bishop.

 

"Bishop says he would put some of his money into gold but is prohibited from this due to the investment policies of The Economist..." click over for the full piece.

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Mad Money

Mad Money | Gold and What Moves it. | Scoop.it

Abby Rapoport: "The Utah measure might sound like one of the many thousands of fringe bills that get filed in state legislatures and then are never heard of again—except occasionally as a punch line on late-night TV. But Galvez’s bill became law last year. Now he’s working on new proposals to make silver and gold easier to use. While Utah is the first state to pass such a law, others are trying. In the 2011–2012 legislative cycle, bills were introduced in 17 states to either recognize gold and silver coins or study the options for alternative currencies.

 

"Ian Millhiser, a policy analyst for the liberal Center for American Progress (CAP), says that these bills come not from an organized national effort but from “people who are sympathetic with the Ron Paul vision of the world going out on their own.”

 

"For years, Paul—the long-serving Texas congressman and three-time presidential candidate—has claimed that the Federal Reserve and its paper currency will eventually doom the U.S. to insolvency. Reviving silver and gold was long a concept relegated to conspiracy theorists, survivalists, and extreme free-marketeers. But the 2008 financial crisis, along with the bank bailout and stimulus bills, lent further credence in far-right circles to the idea that the U.S. was dashing headlong toward financial ruin. The hard right turn of the Republican Party, combined with the Tea Party surge in statehouses in 2010, has further inflamed Fed hysteria.

 

"Paul’s persistent warnings of an unchecked Federal Reserve recklessly printing too much money—the grand theme of his campaigns for president—have found a growing audience. At least six of the state legislators sponsoring gold bills have endorsed him for president. While Paul has focused on auditing (or abolishing) the Federal Reserve, these measures assume its eventual demise and offer, according to their sponsors, a survival plan..."

 

 

Hat tip to:

http://twitter.com/#!/dgcmagazine/  

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Gold Sliding On Central Banker Script - First India Cuts Rates, Next Tries To Talk Down Gold | ZeroHedge

Gold Sliding On Central Banker Script - First India Cuts Rates, Next Tries To Talk Down Gold | ZeroHedge | Gold and What Moves it. | Scoop.it

ZeroHedge:

 

"Gold has moved rather rapidly in the past few minutes and many are scrathcing their heads just why this is happening? The reason is simple: central planning script 101, page 1. As we noted earlier, the RBI did a very surprising overnight repo rate cut from 8.5% to 8.0%, the first in three years, and in other words it has just joined the global central planning cartel in attempting to stimulate the economy nominally, even as inflationary packets still abound across the land (see China), by reliquidifying. Yet what does that mean from a modern monetarist standpoint: why crush gold as an alterantive to the local paper currency of course. Sure enough:

 

"INDIA ECONOMY SECRETARY: EXPECT TO LOWER GOLD CONSUMPTION IN ECONOMY - DJ..."

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Gold edges above $1,650/oz as Spanish bill sale lifts Euro - GOLD ANALYSIS

Gold edges above $1,650/oz as Spanish bill sale lifts Euro - GOLD ANALYSIS | Gold and What Moves it. | Scoop.it

Jan Harvey:

 

"Physical gold demand has softened a touch this year from last year's levels. American Eagle gold coin sales from the U.S. Mint fell 30 percent in the first quarter, and demand in India, historically the world's biggest gold consumer, has been light.

 

"India's central bank cut interest rates on Tuesday for the first time in three years by an unexpectedly sharp 50 basis points to give a boost to sagging economic growth. If this stimulates growth, it is likely to prompt more gold buying.

 

"The unexpected lowering of the interest rate in India could lend support by increasing the hitherto weak demand for gold in the country," Commerzbank said.

 

"Among other precious metals, silver was up 0.3 percent at $31.54 an ounce, spot platinum was flat at $1,568.94 an ounce, and spot palladium was up 0.4 percent at $650.70 an ounce.

 

The platinum/gold ratio, or the number of gold ounces needed to buy an ounce of platinum, rose to a two-month high at 1.05 on Tuesday. As an investment vehicle, gold is finding more support in the current climate than industrial metal platinum, which is heavily exposed to the European car market...."

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Gold investment demand to remain strong in 2012

Gold investment demand to remain strong in 2012 | Gold and What Moves it. | Scoop.it

by Geoff Candy:

 

"According to Klapwijk, over the past decade or so, the yellow metal has done well compared to most other asset classes, outperforming bonds and equities and even the CRB index.

 

"It has really only been outperformed by copper and silver at times. And, year to date, silver and copper have shone more brightly but, gold has still done reasonably well."

 

"But, he adds, if one looks back to the 1980s and adjusts for inflation, the gold price averaged $1,678 in today's money, which is fairly close to where the metal is trading now.

 

"This can be seen as a warning note if you are on the bearish side of the market," he said, but added, "for those on the bullish side of things, however, the high point that year was over $2,200, which is rather far away from current levels."

 

"The second factor likely to play a role in determining the level of investment demand is the performance of the dollar.


"Klapwijk believes that the US dollar is likely to have a somewhat stronger tone over the course of the year than it did in 2011 and this could be somewhat negative for gold investment..."

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Buffett Rule Hypocrisy | Greg Hunter’s USAWatchdog

Buffett Rule Hypocrisy | Greg Hunter’s USAWatchdog | Gold and What Moves it. | Scoop.it

Greg Hunter:

 

"The reason why I say this is merely a “wedge issue” is because it will not do much to reduce the $15.6 trillion deficit. It will set up another totally false narrative that will not help the country. According to the Joint Committee on Taxation, which provides the official Congressional analysis of tax legislation, the Buffett Rule will only raise $4.7 billion a year over the next ten years. Mr. Buffett’s plan is nothing more than a proverbial drop in the bucket. Counting TARP, QE 1, QE 2 and the $16.1 trillion the Federal Reserve pumped out after the 2008 meltdown, we are well on our way to the $23.7 trillion Neil Barofsky, special inspector general for the Treasury’s Troubled Asset Relief Program, predicted the crisis would cost back in 2009. But, even that number, as big as it is, does not tell a complete story, and Mr. Buffett knows it."

 

{In my mind, this rule and all the other talk about raising taxes is all smoke screen by the gov to keep from having to cut budgets and make right and honest decisions on spending. They essentially want to keep the gravy train rolling.}

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Real Time Gold Prices | Exact Price of Gold | Lear Capital

Real Time Gold Prices | Exact Price of Gold | Lear Capital | Gold and What Moves it. | Scoop.it
Get real time gold prices updates even when you're on the move. Keep abreast of the precious metal market price with Lear Capital.

 

Overall all, I would say this was a pretty good week. Gold is stair stepping back up and looks to have a lot of buying in the 1650 range.

 

I keep asking myself, as the MSM types declare that we are into a recovery, what has changed from when the crisis began in 2008?

 

I can't really point to anything. Debt has soared higher. Countries are still broke. And no one has given any solutions to change the course we are on.

 

And gold really continues to declare that nothing has changed by its current price level.

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DOL forcing media to use government computers | Campaign 2012 | Washington Examiner

DOL forcing media to use government computers | Campaign 2012 | Washington Examiner | Gold and What Moves it. | Scoop.it

"Unrest is simmering in some quarters of the Washington news universe regarding changes in the way the Department of Labor (DOL) manages its pre-release media “lockups” on sensitive data like weekly jobless benefits and unemployment."

 

This is unbelievable to me. Come on people. This is further government control. Don't bow to this. All the news reporters should just boycott and not show up.

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Trader Dan's Market Views: Algorithms Gone Wild - AGAIN, and AGAIN, and AGAIN

Trader Dan's Market Views: Algorithms Gone Wild - AGAIN, and AGAIN, and AGAIN | Gold and What Moves it. | Scoop.it

Go read Trader Dan's commentary on the CCI. Here's how he opens:

 

"What more is left to say at this point other than the fact that the hedge fund computers and their damnable algorithms have destroyed the integrity of the US futures markets. The sheer size, extent, ferocity and volatility of the moves that these pestilential computers are creating have rendered these markets basically useless for what they originally came into being for, namely, risk management for commercial entities.


"Price swings of this magnitude are blowing up hedged positions put on by commercials and other end users/merchants/processors, etc. While margins are reduced for legitimate hedgers, they still must meet any and all margin calls on any hedged position, whether that is a long position or a short position. Some will say that all they need to do is to buy or sell the corresponding physical commodity and while simultaneously lifting the hedge. That might work fine on paper but in the real world it is a fabrication..."

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